Cramer's 'Mad Money' Recap: Dear John Deere

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Celebrate Protectionism

Trade talks at the World Trade Organization are at an impasse over agriculture and farm subsidies, said Jim Cramer, and that is good news for Deere & Co. (DE Quote) he said Wednesday on his "Mad Money" TV show.

The U.S., Japan and Europe all have massive farm subsidies, he said, and Cramer believes that those aren't going away. Although farm subsidies "make no economic sense whatsoever," rather than complain about it, Cramer wants to profit from it.

That means buying Deere, which should sell more tractors as money flows to U.S. farmers, he said. Deere is "best of breed," said Cramer, when it comes profiting from farm subsidies.

Cramer said that Deere is selling at a "ridiculously low multiple to earnings" and that the stock is about where it was before it reported earnings last quarter.

The stock had sold off prior to its earnings report over concerns about a shortfall. But, the quarter turned out terrific, said Cramer.

The market hasn't yet priced in the impact of the farm subsidies, he said, and below $70, Deere is "still cheap." Deere also recently sold its HMO unit to UnitedHealth Group (UNH Quote), a "smart move," said Cramer.

'Mon Back Monsanto

Cramer is bullish on Monsanto (MON Quote) because of its new Vistive brand soybean oil, made from soybeans that, when processed, contains "no harmful fats" such as trans fats or saturated fats, he said.

Vistive oil should help reduce or eliminate the need for unhealthy hydrogenated oils in snack foods, said Cramer. With obesity and overweight Americans causing a "national health crisis," this should be huge for Monsanto's earnings, he said.

Monsanto estimates that 5 million acres of soybeans will have to be planted to keep up with demand. That's up from 1 million acres planted annually now.